NZ Funds Managed Portfolio Service€¦ · Primarily listed property and property and/or infrastructure related equities and fixed interest 2.87% Includes estimated performance fees

NZ Funds Managed Portfolio ServiceProduct Disclosure Statement

Issued by New Zealand Funds Management Limited30 June 2017

This document replaces the Product Disclosure Statement dated 25 October 2016

This document gives you important information about this investment to help you decide whether you want to invest. There is other useful information about this offer on www.companiesoffice.govt.nz/disclose. New Zealand Funds Management Limited has prepared this document in accordance with the Financial Markets Conduct Act 2013. You can also seek advice from a financial adviser to help you to make an investment decision.

nz funds managed portfolio service : : product disclosure statement : : 30 june 207 3

. Key information summary

See page 10 for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at: www.nzfunds.co.nz/AdviceSolutions/RiskProfile/

What is this?These are two managed investment schemes. Your money will be pooled with other investors’ money and invested in various investments. New Zealand Funds Management Limited (NZ Funds) will invest your money and charge you a fee for its services. The returns you receive are dependent on the investment decisions of NZ Funds and the performance of the investments. The value of those investments may go up or down. The types of investments and the fees you will be charged are described in this document.

What will your money be invested in?The NZ Funds Managed Portfolio Service is a series of actively managed funds (also referred to as Portfolios in this product disclosure statement (PDS)). Ten Portfolios are offered under this PDS across four investment categories: Cash, Income, Inflation and Growth. These investment options are summarised in the table on page 4. More information about the investment target and strategy for each investment option is provided on pages 8 and 9.

The Portfolios offered under this PDS are established within two managed investment schemes, being the NZ Funds Managed Portfolio Service Part One scheme and the NZ Funds Managed Portfolio Service Part Two scheme. References to the ‘NZ Funds Managed Portfolio Service’ in this PDS are to both schemes.

The Portfolios are designed to be used in combination and not as stand-alone investments. They are also intended to be used in conjunction with a financial planning process.

Who manages the NZ Funds Managed Portfolio Service?The manager of the NZ Funds Managed Portfolio Service is NZ Funds.

See section 7 of this PDS ‘Who is involved?’ on page 13 for more information.

How can you get your money out? If you are invested in the Core Cash Portfolio you can redeem all or part of your investment at any time. If you are invested in any of the other Portfolios you must give 63 days notice of your intention to redeem.

In certain circumstances, NZ Funds may defer or suspend redemptions.

See section 2 of this PDS ‘How does this investment work?’ on page 6 for more information.

Your investment in the Portfolios can be sold but there is no established market for trading these financial products. This means that you may not be able to find a buyer for your investment.

How will your investment be taxed?All of the funds offered under this PDS are portfolio investment entities (PIEs).

The amount of tax you pay in respect of a PIE is based on your prescribed investor rate (PIR). To determine your PIR go to www.ird.govt.nz/toii/pir/.

See section 6 of this PDS ‘What taxes will you pay?’ on page 12 for more information.

Where can you find more key information?NZ Funds is required to publish quarterly updates for each fund. The updates show the returns, and the total fees actually charged to investors, during the previous year. The latest fund updates are available at www.nzfunds.co.nz. NZ Funds will also give you copies of those documents on request.

Some of the features of this offer, including the use of derivatives, may mean an investment in the Portfolios is not appropriate for you. We recommend you discuss the features of this offer with a financial adviser before deciding whether to invest.

4 nz funds managed portfolio service : : product disclosure statement : : 30 june 207

fund name objectiveanticipated primary investments risK indicator

estimated annual fund charges

Core Cash Portfolio

To provide a source of capital by primarily investing in income-orientated assets using an active investment management approach.

Primarily cash and cash equivalents

0.40%

Core Income Portfolio

To provide exposure to income-orientated assets using an active investment management approach.

Primarily New Zealand and international fixed interest

1.53%

Global Income Portfolio

Primarily international fixed interest

1.53%

Core Inflation Portfolio

To mitigate the impact of inflation on your investment over the medium and/or long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.

Primarily a diversified range of inflation-sensitive assets

2.87%

Includes estimated performance fees of 0.07%. See page 11.

Equity Inflation Portfolio

Primarily inflation-sensitive equities and fixed interest

2.87%


Property Inflation Portfolio

Primarily listed property and property and/or infrastructure related equities and fixed interest

2.87%


Core Growth Portfolio

To grow your investment over the long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.

Primarily international equities with opportunistic allocations to other assets

3.35%


Global Multi-Asset Growth Portfolio

Primarily commodities with an allocation to other assets

3.35%


Global Equity Growth Portfolio

Primarily international and Australasian equities

3.35%


Dividend and Growth Portfolio

Primarily Australasian equities

3.15%


The Portfolios are able to invest in a wide range of assets and do not have a target investment mix. They may be invested in permitted investments in any proportion. The anticipated primary investments are noted below.

In gaining exposure to assets, the Portfolios use derivatives. See page 6 for more information.

. Key information summary (continued)


contents

1. Key information summary 3

2. How does this investment work? 6

3. Description of your investment options 8

4. What are the risks of investing? 10

5. What are the fees? 11

6. What taxes will you pay? 12

7. Who is involved? 13

8. How to complain 13

9. Where you can find more information 13

10. How to apply 13


Portfolios being constructed with different combinations of investments, specialist investment managers and investment strategies.

Wholesale trusts and specialist investment managers

The Portfolios may invest directly, or indirectly via wholesale trusts. A wholesale trust is a wholesale fund managed by NZ Funds which holds investments. Those investments may include directly held securities and/or investments in funds, managed by either NZ Funds or external specialist investment managers. The wholesale trust structure provides an effective way for investors to access these specialist investment managers. Specialist investment managers may be selected where NZ Funds considers their investment approach will help meet the objectives of the Portfolios. The current specialist investment managers are available on our website at www.nzfunds.co.nz.

Use of derivatives

In addition to understanding how we manage investments and our use of specialist investment managers, it is important that you know that each Portfolio has the ability to use derivatives. A derivative is a financial instrument, the value of which is derived from changes in the value of another asset (for example, a share market index, a commodity, a bond, or a currency). Examples of derivatives include futures, options, forwards and swaps.

Some examples of how derivatives may be used in a Portfolio include:

• To gain exposure to an asset and/or asset class;

• To modify exposure to an asset and/or asset class; and

• To hedge or seek to mitigate exposure to an asset and/or asset class.

The use of derivatives can result in a Portfolio being leveraged which means small changes in the value of the underlying asset of a derivative may result in substantial gains or losses for the Portfolio.

Economic exposure

Economic exposure is a measure developed and used by NZ Funds to illustrate a Portfolio’s total exposure. The use of derivatives can result in a Portfolio’s economic exposure being greater than the net asset value of the Portfolio.

A Portfolio’s economic exposure is calculated using NZ Funds’ methodology which treats certain types of derivatives differently. The extent to which derivatives are used, and the economic exposure of a Portfolio, changes frequently and changes may be material. For more information on the Portfolios’ economic exposure, see the ‘Other Material Information’ document on the offer register at www.companiesoffice.govt.nz/disclose.

There are limits on the amount of economic exposure that may be incurred by some Portfolios. For the Core Cash Portfolio, economic exposure cannot exceed the Portfolio’s net asset value. For the Core Income Portfolio, Global Income Portfolio, Core Inflation Portfolio, Equity Inflation Portfolio and Property Inflation Portfolio, the economic exposure limit is three times the Portfolio’s net asset value. There is no limit on economic exposure for the Core Growth Portfolio, Global Multi-Asset Growth

2. how does this investment worK?

The Portfolios are established within two managed investment schemes (Schemes) registered under the Financial Markets Conduct Act 2013. The Core Inflation Portfolio and Equity Inflation Portfolio are established within the NZ Funds Managed Portfolio Service Part One scheme and all other Portfolios are established within the NZ Funds Managed Portfolio Service Part Two scheme. Each Scheme is governed by a separate amended and consolidated trust deed (Trust Deed) dated 12 October 2016 between NZ Funds and The New Zealand Guardian Trust Company Limited (the Supervisor).

The money you invest into a Portfolio is pooled with other investors’ money to purchase assets. You will be allocated units in each Portfolio you invest in which represent your proportionate holding in the Portfolio. The units do not give you legal ownership of the Portfolio’s assets but they give you the right to any returns from those assets.

The number of units you are allocated is based on the price per unit, called the unit price. The performance of your investment will be measured by the rise or fall of the unit price. As the combined value of the assets owned by a Portfolio increases or decreases, so too will the unit price.

The Portfolios do not make distributions and any income received by the Portfolios is reflected in the unit price. The assets of a Portfolio are not available to meet the liabilities of any other Portfolio in the relevant Scheme.

Features and benefitsSome of the features of this offer, including the use of derivatives, may mean an investment in the Portfolios is not appropriate for you. We recommend you discuss the features of this offer with a financial adviser before deciding whether to invest.

An integrated approach

The Portfolios are designed to be used in combination, and not as stand-alone investments. It is generally intended that investors allocate their investment across all of the Portfolios within each investment category. The Portfolios are also intended to be used in conjunction with a financial planning process.

Active investment management

We use an active investment management approach that seeks to maintain a balance between preserving your capital and growing your wealth in a manner that is consistent with each Portfolio’s objective.

In managing the Portfolios, we take a wide variety of actions and are not constrained by a benchmark (or target) asset allocation or range. The actions we take include, but are not limited to: altering the proportion invested in each security or asset class; altering the manner in which a Portfolio is exposed to each security or asset class; investing directly or indirectly; using derivatives and /or any resulting leverage; using collective investment vehicles; using specialist investment managers; applying hedging; or taking short positions.

The way in which our active investment management approach is implemented may change over time. This may result in the


Portfolio, Global Equity Growth Portfolio and Dividend and Growth Portfolio.

Where economic exposure exceeds the net asset value of the Portfolio, this generally means the Portfolio is leveraged. While the use of derivatives can lead to the Portfolios being leveraged, the Portfolios do not borrow money to invest. Leverage may increase the volatility of the Portfolio and may significantly increase the risk and extent of any loss.

Making investmentsYou can make an investment in a Portfolio by completing the relevant application form at the back of this PDS (see section 10 'How to apply' for more information). An investment can be made by lump sum, and/or regular contributions. There is currently no minimum investment amount.

Each lump sum contribution must be accompanied by a completed application form.

You can choose to make regular contributions on a weekly, fortnightly, monthly or quarterly basis. There is no obligation for you to make any ongoing regular contributions once you have made your initial investment. You can stop regular contributions at any time by giving written notice to NZ Funds.

NZ Funds does not charge a contribution fee.

Withdrawing your investmentsYou can redeem all or part of your investment in a Portfolio (subject to the redemption restrictions below) by completing a withdrawal request form and sending it to NZ Funds. You can obtain this form from your financial adviser or from our website at www.nzfunds.co.nz.

If you are invested in the Core Cash Portfolio you can redeem your investment at any time. If you are invested in any of the other Portfolios you must give 63 days notice of your intention to redeem.

If you experience financial hardship or in other exceptional circumstances, NZ Funds may waive the notice period for a particular redemption. Once you give your redemption notice, you cannot revoke it unless NZ Funds agrees.

Where a notice period applies, redemption proceeds will be calculated on the date that the notice period expires and not on the date that you provide your withdrawal request form to NZ Funds. You should be aware that this could affect the amount of the redemption proceeds.

Redemption proceeds are normally paid within four business days of expiry of the redemption notice period, or where no notice period applies, within four business days of a withdrawal request form being received and processed by NZ Funds.

You can also set up a regular withdrawal programme that allows you to redeem a set amount from a Portfolio each month or quarter without the need to complete a withdrawal request form for each redemption. Regular withdrawals are currently only available for the Core Cash Portfolio, Core Income Portfolio and Global Income Portfolio. Any redemption notice period

that applies must expire before the first regular withdrawal instruction commences.

We may refuse a redemption request that would result in you holding less than $1,000 of units (except where all of your units are being redeemed).

NZ Funds may in its discretion defer redemptions for up to two business days. NZ Funds may also suspend redemptions in certain circumstances where it considers that it is not practicable, or would be materially prejudicial to the interests of any investors in the Portfolio, to permit redemptions.

NZ Funds does not charge a redemption fee.

How to switch between fundsYou can switch between Portfolios by completing a switch application form at the back of this PDS. The same redemption restrictions described under ‘Withdrawing investments’ will apply.

NZ Funds does not charge a switch fee.

2. how does this investment worK? (continued)


fund name objective permitted investments

investment strategy summary

anticipated primary investments risK category

minimum suggested

investment timeframe

Core Cash Portfolio

To provide a source of capital by primarily investing in income-orientated assets using an active investment management approach.

• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Foreign currency

Over time, it is anticipated that the Portfolio will hold a significant exposure to cash and cash equivalents. From time to time the Portfolio may invest in New Zealand fixed interest and/or international fixed interest.

Primarily cash and cash equivalents

1 month +


To provide exposure to income-orientated assets using an active investment management approach.

• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Foreign currency• Alternative securities*

Over time, it is anticipated that the Portfolio will hold a significant exposure to cash and cash equivalents, New Zealand fixed interest, and/or international fixed interest.

Primarily New Zealand and international fixed interest

2 years +

Global Income Portfolio

Over time, it is anticipated that the Portfolio will hold a significant exposure to cash and cash equivalents, international fixed interest, and/or New Zealand fixed interest.

Primarily international fixed interest

2 years +


To mitigate the impact of inflation on your investment over the medium and/or long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.

• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Australasian equities• International equities• Listed property• Foreign currency• Commodities• Alternative securities*

Over time, it is anticipated that the Portfolio will hold a diversified range of assets expected to include cash and cash equivalents, New Zealand fixed interest, international fixed interest, Australasian equities, international equities, commodities, foreign currency, and/or alternative securities.

Primarily a diversified range of inflation-sensitive assets

5 years +


Over time, it is anticipated that the Portfolio will hold a significant exposure to Australasian equities, international equities, and/or alternative securities.

Primarily inflation-sensitive equities and fixed interest

5 years +


• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Australasian equities• International equities• Listed property• Foreign currency• Alternative securities*

Over time, it is anticipated that the Portfolio will hold a significant exposure to property and/or property related securities including infrastructure assets.

Primarily listed property and property and/or infrastructure related equities and fixed interest

5 years +

3. description of your investment options

* ‘Alternative securities’ means asset classes not usually accessed by retail investors, for example, private equity, venture capital and hedge funds. These tend to be asset classes where valuation and liquidity may be uncertain and returns may be volatile.




fund name objective permitted investments

investment strategy summary

anticipated primary investments risK category

minimum suggested

investment timeframe


To grow your investment over the long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.

• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Australasian equities• International equities• Listed property• Foreign currency• Commodities• Alternative securities*

Over time, it is anticipated that the Portfolio will hold a diversified range of assets with a significant exposure to growth-orientated assets.

Primarily international equities with opportunistic allocations to other assets

10 years +


Over time, it is anticipated that the Portfolio will hold a diversified range of assets with a significant exposure to commodities and/or alternative securities.

Primarily commodities with an allocation to other assets

10 years +


Over time, it is anticipated that the Portfolio will hold a diversified range of assets with a significant exposure to Australasian equities, international equities, and/or alternative securities.

Primarily international and Australasian equities

10 years +


• Cash and cash equivalents• New Zealand fixed interest• International fixed interest• Australasian equities• International equities• Listed property• Foreign currency

Over time, it is anticipated that the Portfolio will hold a diversified range of assets with a significant exposure to Australasian equities.

Primarily Australasian equities

10 years +

For more information on NZ Funds’ investment approach, see the Statement of Investment Policy and Objectives (SIPO). NZ Funds may make changes to the SIPO at any time after consulting with the Supervisor. A description of any material changes to the SIPO will be included in each Scheme’s annual report. Where required by the relevant Trust Deed or law, you will receive prior notice of material changes. The current SIPO for the Portfolios is available on the scheme register at www.companiesoffice.govt.nz/disclose.

Further information about the assets in each Portfolio can be found in the fund updates at www.nzfunds.co.nz.

3. description of your investment options (continued)

* ‘Alternative securities’ means asset classes not usually accessed by retail investors, for example, private equity, venture capital and hedge funds. These tend to be asset classes where valuation and liquidity may be uncertain and returns may be volatile.




be high risk. The use of these instruments and techniques may increase the volatility of a Portfolio and may also significantly increase the risk and extent of any loss. Examples include:

• Derivatives. A derivative is a financial instrument, the value of which is derived from changes in the value of another asset (for example, a share market index, a commodity, a bond, or a currency). The use of derivatives can result in a Portfolio being leveraged which means small changes in the value of the underlying asset of a derivative may result in substantial losses for the Portfolio.

• Short positions. When taking a short position, the seller seeks to profit from a fall in the price of a security. However, there is no assurance that the price will fall and if it rises, a loss will be incurred.

• Asset concentration. The Portfolios can hold permitted asset classes and securities in any proportion or concentration meaning that the Portfolios may not be diversified.

• Higher risk securities and/or managers. The Portfolios can hold an allocation to some securities or managers (for example, alternative securities) which are higher risk than the risk indicator of the Portfolio where NZ Funds assesses that the investment will not materially alter the Portfolio’s risk indicator. In making this assessment, NZ Funds may consider the different types of risk a Portfolio is exposed to, asset correlations, liquidity and NZ Funds’ active investment management approach. However, actual results may differ, increasing the risk and extent of any loss.

Other specific risksOther circumstances that can significantly increase the risk to returns for investors and that are not reflected in the risk indicator include:

Active investment management

NZ Funds uses an active investment management approach. An active investment management approach is subject to different risks (which may be considered higher risks), than a non-active investment approach. As a result, NZ Funds’ active investment management approach may cause the returns and capital stability of the Portfolios to significantly differ from the returns and capital stability of the underlying asset classes utilised.

Wide investment mandates

The Trust Deeds and SIPO for the Portfolios enable NZ Funds to invest in a wide range of assets and to change assets quickly and without notice to investors. NZ Funds has developed internal investment guidelines as part of its investment management process which assist in the oversight of each Portfolio.

Specialist investment managers

NZ Funds’ investment strategy may include the selection of underlying specialist investment managers. There are a number of risks associated with investing in a specialist investment manager, including that a manager selected underperforms, or that a manager may suspend withdrawals from an underlying fund, resulting in a loss. NZ Funds has a due diligence process for appointing specialist investment managers and all managers are monitored and reviewed.

4. what are the risKs of investing?

Understanding the risk indicatorManaged funds in New Zealand must have a standard risk indicator. The risk indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment. You can compare funds using the risk indicator.

The risk indicators for the funds offered under this PDS can be found on page 4.

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.

To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.nzfunds.co.nz/AdviceSolutions/RiskProfile/.

Note that even the lowest category does not mean a risk-free investment, and there are other risks (described under the heading ‘Other specific risks’) that are not captured by this rating.

The risk indicator is not a guarantee of a fund’s future performance. The risk indicator is based on the returns data for the five years to 31 March 2017. While risk indicators are usually relatively stable, they do shift from time to time. You can see the most recent risk indicator in the latest fund updates for the Portfolios.

The risk indicator is based on historical returns only. It takes no account of expected future risk or potential returns. It may not be a reliable indicator of future risk, volatility or expected returns.

General investment risksSome of the things that may cause a Portfolio’s value to move up and down, which affect the risk indicator, are:

Market risk

Market risk is the risk of volatility or loss caused by a change in the value of the investments held by a Portfolio. Market risk arises from uncertainty about the future value of investments held by a Portfolio. These changes may be caused by factors specific to an investment, or as a result of factors affecting financial markets generally.

Illiquid securities

The Portfolios may hold illiquid securities. Illiquid securities are assets that cannot quickly be converted or exchanged for cash (or not without a significant loss in value). Illiquid securities generally carry a greater risk than liquid securities, particularly during times of market turmoil. Investment illiquidity may make it difficult to value, acquire or dispose of assets.

Certain investment instruments and techniques

NZ Funds and underlying specialist investment managers are able to use certain investment instruments and techniques which can

3


5. what are the fees?

fund name

management fee

administration charges (estimated)

external manager performance

fees (estimated)

nz funds performance

fees (estimated)

total annual fund

charges* (estimated)

Core Cash Portfolio 0.15% 0.25% 0.40% 0.00% n/a 0.40%


Global Income Portfolio0.80% 0.73% 1.53%

0.00%0.00%

n/a1.53%

1.53%




1.75% 1.05% 2.80%

0.07%

0.07%0.07%

n/a

2.87%

2.87%

2.87%





1.75% 1.19% 2.94%

0.20%

0.20%

0.20%

0.00%

0.21%

0.21%

0.21%

0.21%

3.35%

3.35%

3.35%

3.15%

You will be charged fees for investing in the Portfolios. Fees are deducted from your investment and will reduce your returns. If NZ Funds invests in other funds, those funds may also charge fees. The fees you pay will be charged in two ways:

• Regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over the long term.

• One-off fees (NZ Funds does not charge any establishment, contribution, termination, withdrawal, switch or transfer fees).

fee description

Management fee Each Portfolio has an annual management fee at a fixed rate. As the management fees are fixed as a percentage of the gross asset value of each Portfolio, these charges have been estimated as a percentage of net asset value in the above table. Management fees are accrued daily and paid to NZ Funds monthly in arrears.

Administration charges These cover the general management of the Portfolios (for example, Supervisor fees, expense reimbursement, legal and audit fees). They also cover fees and costs payable in respect of the underlying funds that the Portfolios invest in (excluding performance fees charged by specialist investment managers). Some of these underlying fund charges are payable to NZ Funds and its associated entities. These charges are an estimate. Actual charges for the previous 12 months are available in the latest fund update.

External manager performance fees

These cover performance fees that may be charged by underlying specialist investment managers (not related to NZ Funds) when specific performance targets are met. These fees are an estimate. Actual performance fees will depend on the managers selected which will change from time to time and on their actual performance, and will vary from the estimates. Past performance is not indicative of future performance.

NZ Funds performance fees

These cover performance fees that may be charged by NZ Funds when specific performance targets are met. These fees are an estimate. Actual performance fees will depend on the performance of the Portfolio and will vary from the estimates. Past performance is not indicative of future performance. Actual charges for the previous 12 months are available in the latest fund update. For more information on NZ Funds performance fees, see ‘Performance-based fees’ on page 12.

Description of the above fee categories:

* Expressed as a percentage of the net asset value of the Portfolio. The total annual fund charges include a combination of fixed and variable (performance-based) fees and therefore actual fund charges will vary from the estimates depending on performance. Annual fund charges are deducted from the Portfolio or the underlying funds it invests in (as applicable) and reflected in the Portfolio’s unit price.

+ =

+ =

+ =

+ =

+

+

+

+

=

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For more information on the above fees and charges, including the basis of estimates, see the ‘Other Material Information’ document on the offer register at www.companiesoffice.govt.nz/disclose.

Key person risk

The Portfolios may be dependent on the services of key personnel of NZ Funds and may be adversely affected by the departure or performance of key personnel.

For more information on the risks of investing in the NZ Funds Managed Portfolio Service, see the ‘Other Material Information’ document on the offer register at www.companiesoffice.govt.nz/disclose.

4. what are the risKs of investing? (continued)


Liam invests $10,000 in the Core Inflation Portfolio. He is charged management and administration fees, which work out to about $287 (2.87% of $10,000). These fees might be more or less if his account balance has increased or decreased over the year.

estimated total fees for the first year Fund charges $287*

* Includes estimated external manager performance fees of $7.

See the latest fund update for an example of the actual returns and fees investors were charged over the past year.

This example only applies to the Core Inflation Portfolio. If you are considering investing in other Portfolios, this example may not be representative of the actual fees you may be charged.

Example of how fees apply to an investorThe performance fee is charged on the following basis:

Hurdle rate of return

The performance fee is payable if the returns of a Portfolio in a financial year exceed 8% (hurdle rate of return).

Amount of performance fee

The performance fee is 10% of Portfolio returns above the hurdle rate of return.

Rebate of performance fee

If a Portfolio incurs a performance fee in a financial year but in the subsequent financial year (rebate year) the Portfolio’s returns are less than the hurdle rate of return, NZ Funds will rebate back to the Portfolio some or all of that performance fee. The amount of the rebate is equivalent to 10% of the Portfolio’s returns below the hurdle rate of return. The rebate will not be more than the performance fee amount incurred in the previous financial year.

Frequency of calculation and payment

The performance fee (or rebate, if applicable) is calculated daily and paid quarterly. All performance fee amounts are paid to the Supervisor who holds these amounts on trust until the end of the rebate year. The performance fee (net of any rebates) is not paid to NZ Funds until the end of the rebate year. Before the Supervisor pays any performance fee to NZ Funds, the amount is verified by the Portfolio’s auditors. The Portfolio does not apply a high water mark. However, a rebate of the performance fee may apply as described above. A ‘high water mark’ is the value a fund must reach before the manager can charge a performance fee. The impact of the Portfolio not applying a high water mark is that if the Portfolio drops in value and then recovers, you may be paying a performance fee twice for the same return, once for the recovered growth, as well as the original growth.

Maximum amount

There is no maximum limit on the amount of the performance fee that may be paid.

Changing the performance fee

NZ Funds may alter the rate and basis of calculation of the performance fee and rebate by providing one month’s notice to all investors in the Portfolio.

5. what are the fees? (continued)

Performance-based feesNZ Funds may charge a performance fee in the following Portfolios:

• Core Growth Portfolio

• Global Multi-Asset Growth Portfolio

• Global Equity Growth Portfolio

• Dividend and Growth Portfolio

Each Portfolio is a portfolio investment entity. The amount of tax you pay is based on your prescribed investor rate (PIR). To determine your PIR, go to www.ird.govt.nz/toii/pir/. If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department.

It is your responsibility to tell NZ Funds your PIR when you invest or if your PIR changes. If you do not tell NZ Funds, a default rate may be applied.

If the advised PIR is lower than the correct PIR, you will need to complete a personal tax return and pay any tax shortfall, interest, and penalties. If the default rate or the advised PIR is higher than the correct PIR, you will not get a refund of any overpaid tax.

For more information on tax, see the ‘Other Material Information’ document on the offer register at www.companiesoffice.govt.nz/disclose.

6. what taxes will you pay?

The fees can be changedExisting fees may be changed or new fees introduced in accordance with the Trust Deeds. For more information, see the ‘Other Material Information’ document on the offer register at www.companiesoffice.govt.nz/disclose.

NZ Funds must publish a fund update for each Portfolio showing the fees actually charged during the most recent year. Fund updates, including past updates, are available at www.nzfunds.co.nz.

All fees are stated exclusive of GST or other similar tax. This means that if any GST, or other similar tax, is payable on any fee, that tax will be payable in addition to the amount of the fee.

NZ Funds may, in its discretion and from its own funds, reduce, pay, contribute to or rebate some of the fees and expenses described in this section.


8. how to complain

In the first instance, please contact NZ Funds. Our contact details are set out in section 7 of this PDS ‘Who is involved?’.

Complaints about an investment can also be made direct to the Supervisor or to Financial Services Complaints Limited (FSCL), NZ Funds’ and the Supervisor’s approved dispute resolution scheme.

Supervisor

Attention: NZ Funds Relationship Manager The New Zealand Guardian Trust Company Limited Level 14, 191 Queen Street PO Box 274 Auckland 1140

T. 09 909 5100E. [email protected]

Dispute resolution scheme

Attention: Early Assistance Officer Financial Services Complaints Limited PO Box 5967 Wellington 6145

T. 04 472 3725 or 0800 347 257E. [email protected] W. www.fscl.org.nz

FSCL will not charge a fee to any complainant to investigate or resolve a complaint.

About NZ FundsNZ Funds is the manager of the NZ Funds Managed Portfolio Service.

NZ Funds makes decisions about what assets the Portfolios invest in, and may appoint underlying specialist investment managers. Our contact details are:

Attention: Head of Client Services New Zealand Funds Management Limited Level 16, 21 Queen Street Private Bag 92163 Auckland 1142

T. 09 377 2277 or 0508 733 337 E. [email protected]

Who else is involved?

7. who is involved?

title name role

Supervisor The New Zealand Guardian Trust Company Limited

Supervisor and Custodian of the Portfolios under the Financial Markets Conduct Act 2013, responsible for supervising NZ Funds as manager of the Portfolios andholding Scheme property on trust for the Schemes.

0. how to apply

You can invest in a Portfolio by completing the relevant application form at the back of this PDS. You will also need to complete the required Anti-Money Laundering (AML) forms which are available on our website at www.nzfunds.co.nz, or from your financial adviser.

9. where you can find more information

Further information relating to the Schemes and the Portfolios, such as financial statements, quarterly fund updates, annual reports, the ‘Other Material Information’ document, the Trust Deeds and the SIPO for the Portfolios, is available on the offer register and the scheme register at www.companiesoffice.govt.nz/disclose. A copy of information on the offer register and the scheme register is available on request to the Registrar of Financial Service Providers.

Fund updates and other information relating to the Portfolios is available on our website at www.nzfunds.co.nz. You may request a copy of this information from us free of charge.


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nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : application form - individual or joint account 15

Application Form - Individual or Joint AccountNZ Funds Managed Portfolio Service Product Disclosure Statement dated 30 June 2017.

Use this form if you are investing under your legal name, or jointly with another individual, or on behalf of another individual.

Return to New Zealand Funds Management Limited, Private Bag 92226, Auckland 1142, or by email to [email protected].

Continued over...

NZ Funds client numberAccount name

Section A: Account details

Existing client (go to Section B: Personal details of this form if no account details updates required.)

Postal address

Street/PO Box

Suburb City Postcode

Telephone

( ) ( )

Mobile Home Business

Email

No emailIf you supply an email address, we will send you information relating to your investment by electronic means. We suggest using your personal rather than work email address as this is less likely to change over time.

New client

Bank details

This is the bank account into which all withdrawal payments and distributions (if any) will be deposited. Please give details for one bank account only. The bank account should be in the same name as your NZ Funds account. Please attach a deposit slip or other confirmation of your bank account details.

Bank account name

Bank Branch

Bank Branch Account number Suffix

Prescribed Investor Rate (PIR)

You must complete this entire section. If this is not provided, the Application Form cannot be processed.

Joint clients can advise only one IRD number for all PIR investments held by their joint account. The IRD number of the individual with the highest PIR will apply.

To determine your PIR, go to www.ird.govt.nz/toii/pir/. See section 6 of the Product Disclosure Statement ‘What taxes will you pay?’ for more information.

PIR (select one)

10.5% 17.5% 28%

Please indicate the individual whose IRD number will apply

Individual 1 Individual 2

16 nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : application form - individual or joint account

Continued over...

Section B: Personal detailsIf you are a new client, or an existing client who has not completed an Application Form since 1 July 2017, please complete all personal details below.

Individual 2

Surname Date of birth

Name

Title (Mr / Mrs / Miss / Ms / Dr) First name Middle name(s)

Address (residential)

Street/PO Box


Individual 1


Name



Street/PO Box


Email

Telephone

( ) ( )


Are you a New Zealand tax resident?

Yes No If Yes, please provide your IRD number.

Are you a US Person? (A US Person includes a US tax resident, citizen or permanent resident/Green Card holder)

Yes No If Yes, please provide your US Tax Identification Number.

Are you a tax resident of any other country? (i.e. not including New Zealand or the United States)

Yes No If Yes, please provide us with the jurisdiction and the Tax Identification Number (TIN)* for each.

* If a TIN is unavailable please provide the appropriate reason A or B where applicable:

Reason A – The country/jurisdiction where you are resident does not issue TINs to its residents.

Reason B – You have not been issued with a TIN or equivalent number.

Country TIN* Reason


Continued over...





Email

Telephone

( ) ( )


Category Portfolio Notice period* Lump sum investment Upfront adviser fee**

Cash Core Cash Portfolio None $ $

IncomeCore Income Portfolio 63 days $ $

Global Income Portfolio 63 days $ $

Inflation

Core Inflation Portfolio 63 days $ $

Property Inflation Portfolio 63 days $ $

Equity Inflation Portfolio 63 days $ $

Growth

Core Growth Portfolio 63 days $ $

Global Multi-Asset Growth Portfolio 63 days $ $

Global Equity Growth Portfolio 63 days $ $

Dividend and Growth Portfolio 63 days $ $

Total $ $* Withdrawals are permitted only after expiry of the notice period. ** The client authorises NZ Funds to deduct units from the client’s holdings in the relevant Portfolio to fund the payments of this fee to the financial adviser.

Please make any cheques payable to NZGT ASF NZ Funds - Applications marked ‘Account Payee Only’, or by direct credit to 03-0104-0122344-00 and include your account name and your NZ Funds client number (if an existing client) in the payment reference details.

Lump sum investment

Section C: Investment options






Country TIN* Reason

If there are more than two people who can control the account please provide details of these people using the Additional Controlling Persons Form available on our website at www.nzfunds.co.nz.


* Frequency periods for regular contributions are weekly, fortnightly, monthly or quarterly.** Please complete a Direct Debit Form (attached to this Product Disclosure Statement) and note ’Start date’ must be a minimum of 10 days from

expected receipt date by NZ Funds.

Regular contributionsIf you have elected to make regular contributions, please indicate the details of your contributions in the table below.

Category Portfolio Frequency* Amount Start date** New/Amend

Cash Core Cash Portfolio $ N A

IncomeCore Income Portfolio $ N A

Global Income Portfolio $ N A

Inflation

Core Inflation Portfolio $ N A

Property Inflation Portfolio $ N A

Equity Inflation Portfolio $ N A

Growth

Core Growth Portfolio $ N A

Global Multi-Asset Growth Portfolio $ N A

Global Equity Growth Portfolio $ N A

Dividend and Growth Portfolio $ N A

Total $

Continued over...

Regular withdrawalsYour regular withdrawals will continue until you advise NZ Funds otherwise. Please note that regular withdrawals are permitted only from the following Portfolios.

* Frequency periods for regular withdrawals are monthly or quarterly.** Please note that any withdrawal notice period that applies must expire before the first regular withdrawal payment commences.

Category Portfolio name Notice period Frequency* Amount Start date** New/Amend

Cash Core Cash Portfolio None $ N A

IncomeCore Income Portfolio 63 days $ N A

Global Income Portfolio 63 days $ N A


Continued over...

Terms and conditionsBy signing this Application Form, I/we confirm that:

• All details provided in this Application Form are correct.

• I/we have received, read and understood the Product Disclosure Statement dated 30 June 2017 to which this Application Form was attached. I/we understand that additional information about the NZ Funds Managed Portfolio Service is available on the online register entry at www.companiesoffice.govt.nz/disclose.

• I/we agree to be bound by the terms and conditions contained in the Product Disclosure Statement, the Trust Deeds (as amended from time to time) and the online register entry relating to the NZ Funds Managed Portfolio Service.

• I/we understand that personal information provided in this Application Form and any personal information provided by me/us in the future will be used by NZ Funds and the Supervisor, and any related companies of these parties, together with my/our financial adviser, for administering the investment, including satisfying the requirements of the AML/CFT Act* (this may include using my/our personal information for the purpose of electronic identity verification using various third party databases including the Department of Internal Affairs database).I understand my personal information may also be shared with relevant authorities including Inland Revenue. NZ Funds may also use my/our personal information to provide me/us with information about other products and services. I/we acknowledge that I/ we have the right to access and correct this information.

• I/we authorise NZ Funds to disclose personal information to the Financial Markets Authority as may be required from time to time under the Financial Markets Conduct Act 2013 or any other law.

• If you are a US Person, NZ Funds may be required to provide certain information about your investment in the NZ Funds Managed Portfolio Service to Inland Revenue in order for NZ Funds to satisfy its obligations under the US Foreign Account Tax Compliance Act (FATCA)*. In accordance with the provisions of the FATCA regime, Inland Revenue may pass this information to the United States Internal Revenue Service.

• If you are a tax resident of another country, NZ Funds may be required to provide certain information to Inland Revenue in order to satisfy its obligations under the Common Reporting Standards (CRS)*. In accordance

with the provisions of the CRS regime, Inland Revenue may pass this information to tax departments of other participating jurisdictions.

• I/We agree to comply with the Common Reporting Standards (CRS) regulations which include agreeing to inform NZ Funds of any changes of tax residency status that apply to account holders within 30 days of the change.

• NZ Funds, as Manager of the NZ Funds Managed Portfolio Service, has the power under the Trust Deeds to redeem any units, if it believes compliance of applicable laws (such as AML/CFT, FATCA and CRS) has not been met. NZ Funds does not need to notify the affected unit holder before invoking this power. If NZ Funds chooses to redeem my/our units, the funds will be returned to the nominated bank account (or cheque) in the same name as the NZ Funds Managed Portfolio Service account. Alternatively, the funds will be held in a non-interest bearing bank account.

• I/we consent to NZ Funds communicating with me/us, and providing me/us with information, by electronic means (i.e. by email, as provided by me/us and/or by providing me/us with a URL link , or with information through an electronic facility). These communications may include, but not be limited to, general correspondence, investment updates, and legally required communications or documents (including transaction confirmations, annual reports and annual tax statements).

• I/we consent to receiving transaction confirmations relating to my/our investment(s) in the NZ Funds Managed Portfolio Service on a six monthly basis.

• If two or more individuals have completed this Application Form and separate ownership is not defined, NZ Funds and the Supervisor are entitled to assume the investment is jointly held by those individuals.

• NZ Funds and the Supervisor are entitled to rely on my/our elected PIR for all investments I/we have made for this account.

• I/we understand the value of my/our investment in a Portfolio can rise and fall depending on market conditions and other circumstances prevailing at the time, and that there is no promise or guarantee made by any person as to the performance of any investment or the return of any funds invested.

* For further information regarding AML/CFT, FATCA and CRS please refer to our Compliance Guidance Note available on our website at www.nzfunds.co.nz.

Client signature(s)I/we agree to the terms and conditions set out above. If signing on behalf of an Individual, please name the Individual.

Individual 1 Date

Individual 2 Date


Authorised Financial Adviser use onlyI am an Authorised Financial Adviser authorised to provide financial adviser services in relation to this transaction, and that any upfront adviser fee and client fee agreement is:

• Authorised for deduction under an agreement with the Client; and

• The amount of the fee or fees does not exceed the amount(s) specified in the agreement with the client.

Adviser name Adviser FSP number

Adviser company Adviser code

Adviser signature Date

NoteThe Anti-Money Laundering and Countering Financing of Terrorism Act 2009 requires verification of identity. Please ensure all the relevant AML forms are completed in full, if applicable.

nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : application form - entity 21

Application Form - Entity

Continued over...

NZ Funds Managed Portfolio Service Product Disclosure Statement dated 30 June 2017.

Use this form if you are investing in the name of an entity, such as a trust, estate, company or partnership.


Section A: Account detailsNZ Funds client numberAccount name

Existing account* New account

* If you are a new client or existing client who has not completed an Application Form since 1 July 2017, please complete all Sections of this Application Form.

Postal address

Street/PO Box


Telephone

( ) ( )


Email

No emailIf you supply an email address, we will send you information relating to your investment by electronic means. We suggest using your personal rather than work email address as this is less likely to change over time.

Entity type

Company Trust Estate Other

Bank details

This is the bank account into which all withdrawal payments and distributions (if any) will be deposited. Please give details for one bank account only. The bank account should be in the same name as the Entity’s NZ Funds account. Please attach a deposit slip or other confirmation of your bank account details.

Bank account name

Bank Branch


Prescribed Investor Rate (PIR)

You must select a PIR and provide the entity’s IRD number. If this is not completed, the Application Form cannot be processed. To determine the appropriate PIR, go to www.ird.govt.nz/toii/pir/. See section 6 of the Product Disclosure Statement ‘What taxes will you pay?’ for more information.

PIR (select one)

0% 10.5% 17.5% 28%

IRD number

22 nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : application form - entity

Continued over...

Section B: Entity detailsFull name of Entity (if different from account name)

Is the Entity a Financial Institution (FI)? (See our Compliance Guidance Note available on our website at www.nzfunds.co.nz.)

Yes No

Is the Entity an active non-financial entity? (See our Compliance Guidance Note available on our website at www.nzfunds.co.nz.)

Yes No

Country of establishmentIs the Entity a New Zealand tax resident?

Yes No

Is the Entity a tax resident of any other country?



Reason A – The country/jurisdiction where the Entity is resident does not issue TINs to its residents.

Reason B – The Entity has not been issued with a TIN or equivalent number.

Country TIN* Reason

Controlling personsPlease list all related parties who are associated with the account, regardless of whether they will be signatories to the investment account.

A controlling person can be a natural person or an entity such as a trust or company.

Name Trustee Director SettlorAppointer/Protector Beneficiary** Shareholder

** If the trust is a discretionary trust, beneficiary information need not be provided until a beneficiary receives a distribution from the trust. See our Compliance Guidance Note available on our website at www.nzfunds.co.nz for more information.

Trustees or Directors or any person who is able to operate this investment account - please continue to Section C.All others - please complete Section E.


Continued over...

Section C: Controlling person’s detailsThis section must be completed by all controlling persons who are able to operate this investment account.

Controlling person 1


Name



Street/PO Box


Email

Telephone

( ) ( )








Name



Street/PO Box







Country TIN* Reason


Continued over...



Name



Street/PO Box


Email

Telephone

( ) ( )






Email

Telephone

( ) ( )











Country TIN* Reason


Continued over...






Country TIN* Reason



Name



Street/PO Box


Email

Telephone

( ) ( )











Country TIN* Reason

If there are more than four people who can control the account please provide details of these people using the Additional Controlling Persons Form available on our website at www.nzfunds.co.nz.


Continued over...








Inflation




Growth





Total $

Category Portfolio Notice period* Lump sum investment Upfront adviser fee**




Inflation




Growth





Total $ $

* Withdrawals are permitted only after expiry of the notice period. ** The client authorises NZ Funds to deduct units from the client’s holdings in the relevant Portfolio to fund the payments of this fee to the financial adviser.

Please make any cheques payable to NZGT ASF NZ Funds - Applications marked ‘Account Payee Only’, or by direct credit to 03-0104-0122344-00 and include your account name and your NZ Funds client number (if an existing client) in the payment reference details.

Lump sum investment

Section D: Investment options


Continued over...







Section E: Other controlling persons

Controlling persons are those who exercise control over the entity, including:

• Shareholders with more than 25% ownership

• Settlors

• Protectors

• Beneficiaries

• Any other natural person who can exercise control regardless of whether they exercise that control.

All controlling persons who have not completed Section C should complete below.

Those controlling persons who have completed Section C do not have to complete this section.

Other Controlling Person 1Name Date of birth









Country TIN* Reason


Continued over...










Country TIN* Reason







Country TIN* Reason







Country TIN* Reason


Continued over...

Terms and conditionsBy signing this Application Form, we confirm that:

• All details provided in this Application Form are correct.

• We have received, read and understood the Product Disclosure Statement dated 30 June 2017 to which this Application Form was attached. We understand that additional information about the NZ Funds Managed Portfolio Service is available on the online register entry at www.companiesoffice.govt.nz/disclose.

• We agree to be bound by the terms and conditions contained in the Product Disclosure Statement, the Trust Deeds (as amended from time to time) and the online register entry relating to the NZ Funds Managed Portfolio Service.

• We understand that personal information provided in this Application Form and any personal information provided by us in the future will be used by NZ Funds and the Supervisor, and any related companies of these parties, together with our financial adviser, for administering the investment, including satisfying the requirements of the AML/CFT Act* (this may include using our personal information for the purpose of electronic identity verification using various third party databases including the Department of Internal Affairs database). We understand our personal information may also be shared with relevant authorities including Inland Revenue. NZ Funds may also use our personal information to provide us with information about other products and services. We acknowledge that we have the right to access and correct this information.

• We authorise NZ Funds to disclose personal information to the Financial Markets Authority as may be required from time to time under the Financial Markets Conduct Act 2013 or any other law.

• If you are a US Person, NZ Funds may be required to provide certain information about your investment in the NZ Funds Managed Portfolio Service to Inland Revenue in order for NZ Funds to satisfy its obligations under the US Foreign Account Tax Compliance Act (FATCA)*. In accordance with the provisions of the FATCA regime, Inland Revenue may pass this information to the United States Internal Revenue Service.

• If you are a tax resident of another country, NZ Funds may be required to provide certain information to Inland Revenue in order to satisfy its obligations under the Common Reporting Standards (CRS)*. In accordance with the provision of the CRS regime, Inland Revenue

may pass this information to tax departments of other participating jurisdictions.

• We agree to comply with the Common Reporting Standards (CRS) regulations which include:

• Agreeing to inform NZ Funds of any distributions made to beneficiaries that are not New Zealand tax residents. This includes distributions from holdings that sit outside the NZ Funds Managed Portfolio Service.

• Agreeing to inform NZ Funds of any changes of tax residency status that apply to account holders and any controlling persons**, within 30 days of the change.

• NZ Funds, as Manager of the NZ Funds Managed Portfolio Service, has the power under the Trust Deeds to redeem any units, if it believes compliance of applicable laws (such as AML/CFT, FATCA and CRS) has not been met. NZ Funds does not need to notify the affected unit holder before invoking this power. If NZ Funds chooses to redeem our units, the funds will be returned to the nominated bank account (or cheque) in the same name as the NZ Funds Managed Portfolio Service account. Alternatively, the funds will be held in a non-interest bearing bank account.

• We consent to NZ Funds communicating with us, and providing us with information, by electronic means (i.e. by email, as provided by us and/or by providing us with a URL link , or with information through an electronic facility). These communications may include, but not be limited to, general correspondence, investment updates, and legally required communications or documents (including transaction confirmations, annual reports and annual tax statements).

• We consent to receiving transaction confirmations relating to our investment(s) in the NZ Funds Managed Portfolio Service on a six monthly basis.

• NZ Funds and the Supervisor are entitled to rely on our elected PIR for all investments we have made for this account.

• We understand the value of our investment in a Portfolio can rise and fall depending on market conditions and other circumstances prevailing at the time, and that there is no promise or guarantee made by any person as to the performance of any investment or the return of any funds invested.

Client signature(s)To be signed by controlling persons who have completed Section C.

We agree to the terms and conditions set out above.

Controlling person 1 Date




* For further information regarding AML/CFT, FATCA and CRS please refer to our Compliance Guidance Note available on our website at www.nzfunds.co.nz

** Controlling persons for CRS refers to trustees, settlors, protectors, beneficiaries, directors and shareholders.









31nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : switch application form

Switch Application Form

Continued over...

NZ Funds client number

Client details

Account name

Switch instructions

Category Portfolio Notice period* Switch from ($ or “All”) Switch to ($ or “All”)




Inflation




Growth





Total $ $

* Withdrawals are permitted only after expiry of the notice period.

If you intend to pay fees to your financial adviser from the Portfolio into which you have switched, your financial adviser will need to send details of your new fee agreement (if applicable).

NZ Funds Managed Portfolio Service Product Disclosure Statement dated 30 June 2017.


32 nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : switch application form

Continued over...






Inflation




Growth





Total $









33nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : switch application form

Client signature(s)I/we agree to the terms and conditions set out above. If signing on behalf of an Individual/Company, please name the Individual/Company.

Individual 1/Director/Trustee Date

Individual 2/Director/Trustee Date

Director/Trustee Date

Director/Trustee Date

Terms and conditionsBy signing this Application Form, I/we confirm that:

• All details provided in this Switch Application Form are correct.

• I/we have received, read and understood the Product Disclosure Statement dated 30 June 2017 to which this Switch Application Form was attached. I/we understand that additional information about the NZ Funds Managed Portfolio Service is available on the online register entry at www.companiesoffice.govt.nz/disclose.

• I/we agree to be bound by the terms and conditions contained in the Product Disclosure Statement, the Trust Deeds (as amended from time to time) and the online register entry relating to the NZ Funds Managed Portfolio Service.

• I/we understand that personal information provided in this Application Form and any personal information provided by me/us in the future will be used by NZ Funds and the Supervisor, and any related companies of these parties, together with my/our financial adviser, for administering the investment, including satisfying the requirements of the AML/CFT Act* (this may include using my/our personal information for the purpose of electronic identity verification using various third party databases including the Department of Internal Affairs database). I/we understand my/our personal information may also be shared with relevant authorities including Inland Revenue. NZ Funds may also use my/our personal information to provide me/us with information about other products and services. I/we acknowledge that I/we have the right to access and correct this information.

• I/we authorise NZ Funds to disclose personal information to the Financial Markets Authority as may be required from time to time under the Financial Markets Conduct Act 2013 or any other law.

• If you are a US Person then you agree that NZ Funds may be required to provide certain information about your investment in the NZ Funds Managed Portfolio Service to Inland Revenue in order for NZ Funds to satisfy its obligations under the US Foreign Account Tax Compliance Act (FATCA). You further understand and agree that in accordance with the provisions of the FATCA regime, Inland Revenue may pass this information to the United States Internal Revenue Service.

• If you are a non-tax resident of New Zealand, NZ Funds may be required to provide certain information to Inland Revenue in order to satisfy its obligations under the Common Reporting Standards (CRS)*. In accordance with the provision of the CRS regime, Inland Revenue may pass this information to tax departments of other participating jurisdictions.

• I/we agree to comply with the Common Reporting Standards (CRS) regulations which include:• Agreeing to inform NZ Funds of any distributions made to

beneficiaries that are not New Zealand tax residents. This includes distributions from holdings that sit outside the NZ Funds Managed Portfolio Service.

• Agreeing to inform NZ Funds of any changes of tax residency status that apply to account holders and any controlling persons**, within 30 days.

• NZ Funds, as Manager of the NZ Funds Managed Portfolio Service, has the power under the Trust Deeds to redeem any units, if it believes compliance of applicable laws (such as AML/CFT, FATCA and CRS) has not been met. NZ Funds does not need to notify the affected unit holder before invoking this power. If NZ Funds chooses to redeem my/our units, the funds will be returned to the nominated bank account (or cheque) in the same name as the NZ Funds Managed Portfolio Service account. Alternatively, the funds will be held in a non-interest bearing bank account.

• I/we consent to NZ Funds communicating with me/us, and providing me/us with information, by electronic means (i.e. by email, as provided by me/us and/or by providing me/us with a URL link , or with information through an electronic facility). These communications may include, but not be limited to, general correspondence, investment updates, and legally required communications or documents (including transaction confirmations, annual reports and annual tax statements).

• I/we consent to receiving transaction confirmations relating to my/our investment(s) in the NZ Funds Managed Portfolio Service on a six monthly basis.

• If two or more individuals have completed this Application Form and separate ownership is not defined, NZ Funds and the Supervisor are entitled to assume the investment is jointly held by those individuals.

• NZ Funds and the Supervisor are entitled to rely on my/our elected PIR for all investments I/we have made for this account.

• I/we understand the value of my/our investment in a Portfolio can rise and fall depending on market conditions and other circumstances prevailing at the time, and that there is no promise or guarantee made by any person as to the performance of any investment or the return of any funds invested.

* For further information regarding AML/CFT, FATCA and CRS please refer to our Compliance Guidance Note available on our website at www.nzfunds.co.nz

** Controlling persons for CRS refers to trustees, settlors, protectors, beneficiaries, directors and shareholders.

34 nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : switch application form








35nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : direct debit form


Direct Debit Form

I/We authorise you, until further notice in writing, to debit my/our account with you all amounts which

New Zealand Funds Management Limited(hereinafter referred to as the Initiator)

the registered Initiator of the above Authorisation code, may initiate by Direct Debit.

I/We acknowledge and accept that the bank accepts this authority only upon the conditions listed on the reverse of this form.

Information to appear on my/our bank statement

Payer Particulars

N V SZ ISM GF NA

For bank use onlyApproved Date received: Recorded by: Checked by: Bank stamp

Original – retain at branch.Copy – forward to Initiator if requested.

180011/15

NZ Funds client detailsAccount name NZ Funds client number

Signature(s)

Signature Date

Signature Date


Bank

Branch

Bank account name to be debited

Date

Bank details

Authorisation code

0 03 081 8

Authority to accept direct debits

(Not to operate as an assignment or agreement)

36 nz funds managed portfolio service : : product disclosure statement : : 30 june 207 : : direct debit form

Conditions of this Authority to accept Direct Debits

1) The Initiator:

a) Undertakes to give notice of the commencement date, frequency and net amount at least 10 calendar days before the first Direct Debit is drawn (but not more than 2 calendar months). This notice will be provided in writing (including by electronic means and SMS where I/we have provided prior written consent (including by electronic means including SMS) to communicate electronically).

Where the Direct Debit system is used for the collection of payments which are regular as to frequency, but variable as to amount, the Initiator undertakes to provide me/us with a schedule detailing each payment amount and each payment date.

In the event of any subsequent change to the frequency or amount of the Direct Debit, the Initiator has agreed to give advance notice of at least 30 days before the change comes into effect. This notice must be provided in writing (including by electronic means and SMS where I/we have provided prior written consent (including by electronic means including SMS) to communicate electronically).

b) May, upon the relationship which gave rise to this Authority being terminated, give notice to the Bank that no further Direct Debits are to be initiated under the Authority. Upon receipt of such notice the Bank may terminate this Authority as to future payments by notice in writing to me/us.

c) May, upon receiving written notice (dated after the date of this Authority) from a bank to which I/we have transferred my/our account, initiate Direct Debits in reliance of that written notice and this Authority from the account identified in the written notice.

2) The Customer may:

a) At any time, terminate this Authority as to future payments by giving notice of termination to the Bank and to the Initiator by the means agreed by me/us, the Bank and the Initiator.

b) Stop payment of any Direct Debit to be initiated under this Authority by the Initiator by giving written notice to the Bank prior to the Direct Debit being paid by the Bank.

c) Where a variation to the amount agreed between the Initiator and the Customer from time to time to be direct debited has been made without notice being given in terms of clause 1(a) above, request the Bank to reverse or alter any such Direct Debit initiated by the Initiator by debiting the amount of the reversal of alteration of Direct Debit back to the Initiator through the Initiator’s Bank, PROVIDED such request is made not more than 120 days from the date when the Direct Debit was debited to my/our account.

3) The Customer acknowledges that:

a) This Authority will remain in full force and effect in respect of all Direct Debits passed to my/our account in good faith notwithstanding my/our death, bankruptcy or other revocation of this Authority until actual notice of such event is received by the Bank.

b) In any event this Authority is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account.

c) Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the Direct Debit has not been paid in accordance with this Authority. Any other dispute lies between me/us and the Initiator.

d) Where the Bank has used reasonable care and skill in acting in accordance with this Authority, the Bank accepts no responsibility or liability in respect of:

- The accuracy of information about Direct Debits on bank statements; and

- Any variations between notices given by the Initiator and the amounts of Direct Debit.

e) The Bank is not responsible for, or under any liability in respect of the Initiator’s failure to give notice in accordance with 1(a), nor for the non-receipt, or late receipt of notice by me/us for any reason whatsoever. In any such situation the dispute lies between me/us and the Initiator.

f) Notice given by the Initiator in terms of clause 1(a) to the debtor responsible for the payment shall be effective. Any communication necessary because the debtor responsible for payment is a person other than me/us is a matter between me/us and the debtor concerned.

4) The Bank may:

a) In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Authority, cheque or draft properly signed by me/us and given to or drawn on the Bank.

b) At any time terminate this Authority as to future payments by notice in writing to me/us.

c) Charge its current fees for this service in force from time-to-time.

These terms and conditions are Payments NZ Limited approved and are non-negotiable. October 2015 – Waiving of Notice





New Zealand Funds Management Limited

Auckland

Level 16, Zurich House 21 Queen Street

Private Bag 92163, Auckland 1142New Zealand

Phone 09 377 2277 [email protected] www.nzfunds.co.nz

Documents

NZ Funds Managed Portfolio Service€¦ · Primarily listed property and property and/or infrastructure related equities and fixed interest 2.87% Includes estimated performance fees